This new initiative is said to benefit smaller firms, trade associations and other similar bodies, who will be able to submit their health and safety schemes to an ABI committee for an assessment of the scheme, which will then be held up against best practice features that they, as insurers, would expect to see.
The ABI assessment committee will consist of senior underwriters, and details of the assessments will be sent by the ABI to all its members offering EL insurance, who will take into account the assessment when calculating premiums. The ABI is keen to stress that there is no 'pass' or 'fail' under the initiative, and that that they are not proposing to set up an accreditation of health and safety schemes nor a system for pricing risks or placing them with insurers.
PLASA is currently investigating this initiative and plans to meet with its own nominated specialist insurer (Allen, Chapman & James) to look at ways in which the Association can maximize the effectiveness of this scheme to bring lower insurance premiums to members. Ron Bonner, PLASA's Technical Standards Manager, commented: "Although the concept is not new, ever-increasing insurance costs demonstrate the need for companies, or individuals, to closely examine the way in which they manage their health and safety responsibilities. It must not be forgotten, however, that the need for cheaper insurance is not the only reason for robust health and safety management. The moral and legal responsibilities should never be ignored."
And staying on insurance . . .
During 2002/2003, the compulsory EL system came under repeated attacks from industries and businesses across the UK over the increasing cost of premiums for employers. Coming from the ABI itself was the staggering across-the-board figure of a 50% increase on EL premiums for employers and for some companies operating in the higher risk sectors, e.g. construction and perhaps even rigging, rises of 500% had been experienced.
So it came as a bit of a surprise to find that the review carried out by the Department for Work and Pensions in the summer concluded that there had not been a general failure in the EL market. It also went on to say that a majority of firms could find EL cover, albeit at a price, and that the level of compliance was high but firms should be prepared to shop around. What wasn't clear was how those companies that hadn't found cover were continuing to trade!
Allen Chapman & James continues to assist PLASA members in sourcing a range of insurance solutions, including Employer's Liability Insurance, and members that have used the service have reported back to the PLASA office that they had received favourable rates and cost savings.
